There are generally three debt collection methods that debt collectors use: letters, telephone calls, and credit reporting. These methods fall under the category of communications as defined by the Fair Debt Collection Practices Act. Each method is discussed in this series with a brief commentary regarding what is and is not permissible (and in some instances what is required) under the FDCPA. Remember that harassment or abuse, false or misleading representations, and/or unfair or unconscionable means to collect a debt are NEVER permitted. This post will discuss credit reporting.
A debt collector can and will report information regarding a debt to a credit reporting agency. See this interesting post discussing this method of collecting debts. However, a debt collector cannot provide false or misleading information. The FDCPA forbids a debt collector from falsely representing the character, amount or legal status of any debt. Section 1692e(2). Furthermore, the FDCPA strictly forbids a debt collector from “communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. Section 1692e(8).